After Nationwide's increase yesterday.... the rest follow today.

PasturesNew

mewbie wrote: »

That should be part of the process when applying for a mortgage. Could you afford this at 8%? Or whatever the long term average is, plus a couple of % for when it's higher than average.

Most of the people I seem to come across would be lucky to factor in the day of the week.

The BBC website mortgage calculator has always shown people how much their mortgage would be at 12% for that reason:

http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

It's been like that for YEARS.

Generali

FWIW, this is not just a UK phenomenon. The CBA in Aus has also put up all its rates.

ray123

Could this be a sign of high interest rates to follow in the next few years as they are raising fixed rate deals?
Or perhaps they are simply trying to increase their profit margins due to a lot of external factors?
I would hope its the external factors responsible, such as increase in bad debts/bankruptcy, for personal reasons.

I have no time for nationwide, they seem to have gone downhill fast.

Thrugelmir

Generali wrote: »

FWIW, this is not just a UK phenomenon. The CBA in Aus has also put up all its rates.

What are rates down under?

Generali

Thrugelmir wrote: »

What are rates down under?

RBA Cash Rate (equivalent to the BoE's base rate) is 3%

Lowest generally available mortgage rate is 4.89% (St George). Max LTV is 80% or 90% with mortgage insurance. 60% for low doc/self cert. You need to have 5% deposit as 'genuine savings' as an FTB. The rest of the deposit can be First Home Owners Grant (a grant given to FTBs over here of $14,000 if buying 2nd hand or $24,000 if buying new).

Savings rates are approximately 3% on average I would guess.

The Aussie dollar has risen a lot on the back of 'high' interest rates - I reckon GBP1 = AUD 2.50 is about normal. At present GBP1 = about AUD 2.02 right now.

Across most most of NSW, house prices are down a little but not massively. They will almost certainly fall further if/when the FHOG is reduced (now scheduled for December) as FTBs are pretty much the only buyers - BTL is mostly dead.

Generali

ray123 wrote: »

Could this be a sign of high interest rates to follow in the next few years as they are raising fixed rate deals?
Or perhaps they are simply trying to increase their profit margins due to a lot of external factors?
I would hope its the external factors responsible, such as increase in bad debts/bankruptcy, for personal reasons.

I have no time for nationwide, they seem to have gone downhill fast.

To some extent it's a response to the idea that the economy may be recovering and so interest rates are likely to rise. This is going to be a problem IMO. Rates will rise if recovery looks likely and choke off recovery. The result? Stagnation if you're lucky.

StevieJ

To fair to AD he gives it his all

mbga9pgf

Hmm, all that mortgage interest going to banks instead of retail.

This is going to do wonders to those SVR rates that 1 in 9 negative equity homeowners are facing in the not too distant future...

shirlgirl2004

This doesn't make me happy. We've had a cash buyer waiting for the last 3 or 4 weeks and have been unable to find anything suitable to buy. Now the tracker rate has gone up to BBBR +2.49% that's before interest rates go up. I might have to look again at what's available but I think I'll leave it until we find somewhere we like.

wymondham

If rates are creeping up, will we see fixed low rate deals slowing disappearing?

... when I had my mortgage we went through a period of 14/15% - boy that hurt - how many people now could withstand any period of this? Not many I suspect!